Responsibilities for Fraud Detection and Prevention

Introduction According to Peltz Bart (2009), a recently conducted survey by the Association of Certified Fraud Examiners gives a suggestion that the business organizations do have more reason to have much concern over fraud than ever before.Advertising We will write a custom research paper sample on Responsibilities for Fraud Detection and Prevention specifically for you for only $16.05 $11/page Learn More But on the other, the survey also indicated that the causes of the fraud can be understood and this problem can be dealt with effectively. It is pointed out that in the year 2008, the fraud cost 994 USD to the American businesses and this figure represents 7% of the total revenues (Peltz Bart, 2009). These researchers further point out that â€Å"as disturbing as those aggregates are, they do not fully convey the impact to a business from an incident† (Peltz Bart, 2009, p.2). A large number of business organizations under no circumstances rec over from the damage. Taking appropriate measures to prevent crime is of great interest to the privately owned business organizations. The businesses that are small and medium in size are mostly susceptible. Such businesses incur bigger losses on the basis of â€Å"per incident† as compared to the business organizations that are large in size. And since there can be wiping out of equity before the unsecured debt as well as lender interests, â€Å"equity interests are the most exposed stakeholders† ((Peltz Bart, 2009, p.2). The cost of fraud to companies or business organizations is immense. The question that has been raised after the occurrence of fraud has been; why did the auditors not see the problem of fraud well in advance?  A sensible answer to this question is that those who engage in committing the fraud were intelligent enough to cover up the fraud. However, in the actual sense, as Omowumi (2010) points out, â€Å"on an increasing level, the blame has been directed towards the auditors which is, most of the time, an indication of â€Å"lack of understanding as to what the role of the auditors should be, but has the auditor’s role changed?† (Omowumi, 2010, p.71).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Considering the fact that the cost of fraud to businesses is quite huge, it is therefore vital to come up with strategies that will facilitate fraud detection and prevention. Putting in to consideration the high public expectations for auditors due to the occurrence of the savings as well as loans scandals, the question that is presented in this paper is what the responsibilities are of the auditors and management. In this paper, the definition of fraud is going to be given and the cost of fraud to businesses is going to be considered. This will be followed by a review of literature on the responsibilities for fra ud detection and prevention in order to find answers to the research question. Defining Fraud In then course of the recent years, the level of fraud has remarkably increased and the professionals hold a belief that there is likelihood that this trend will continue even in the future (Oyinlola, 2010). Before continuing with the discussion, it is very important to look at the definition of the term ‘Fraud’. There are several definitions for this term. One of them is given in the Webster’s Dictionary in which fraud is defined as â€Å"the international deception to cause a person to give up property or some lawful right† (Fraud, 2012, p.1). According to the Association of Certified Fraud Examiners, occupational fraud is defined as, â€Å"the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of employing organization’s resources or assets†(ACFE, 2008, p.1).Advertising We will write a custo m research paper sample on Responsibilities for Fraud Detection and Prevention specifically for you for only $16.05 $11/page Learn More One of the researchers cited in this paper, Omowumi (2010) ,gives the definition of fraud as â€Å"an act of deliberate deception with the intention of gaining some benefit† (Omowumi, 2010, p.71). All these definition point to one thing; that fraud involves theft. In this paper, the interest is in that fraud whose detection may be carried out by the auditors and managers. The Cost of Fraud to Businesses and offenders It is actually hard to give out the estimate of the cost of fraud to business for the reason that there is no discovering of all frauds committed, there is no reporting of all the frauds exposed, and there is no pursing of civil as well as criminal actions at all times. Preventing and Detecting fraud (2009) points out that, basing on the study that was conducted in 2008, it was indicated that 7 percent of the total revenues in organizations would be lost as a consequence of committing fraud. Omowumi (2010) points out that the available data indicate that the overall cost of fraud is more than two times â€Å"the amount of missing money or assets† (Omowumi, 2010, p. 73). While technology advances and computerized systems turn out to be more complex, the expected cost of fraud likewise become complex. It is interesting to find out that it is that employee in a company who is the most trusted and valued that generally engage in the committing of the business fraud. In a large number of cases, those who engage in the committing of fraud do not consider stealing from their company as being a harmful practice.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More They may hold it that the crime they commit is one that has no victims and they do not look at the theft they engage in as being costly to the company. A large number of frauds come about for the reason that there is an opportunity and the people who commit the crime has an idea that he or she will not be caught. In a large number of instances, the one committing fraud does not have or has very little ‘criminal self concept’ and consider violations as being part of his or her work. The offenders normally try as much as possible to minimize their crime because the crime brings about minor losses for a big volume of customers. There is no targeting of one particular customer for the crime (Omowumi, 2010). The Responsibilities for Fraud Detection and prevention According to Omowumi (2010), the auditor has the responsibility â€Å"to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether c aused by error or fraud† (Omowumi, 2010, p.73). Because of the audit evidence nature and fraud characteristic, the auditor is in a position to get reasonable, but not complete, guarantee that there is detection of material misstatements (Omowumi, 2010; Akinwolemiwa, 2009). For a long time, detection of fraud has been regarded as being a major reason for auditing. But there has been no clear definition of the auditor’s role from the beginning. A review of the historical development of the responsibility of the auditors in fraud detection and reporting over years was carried out by Porter (1997). This researcher’s study gives an indication that there is an assessment of auditing practices and change in auditing concept through several stages. According to Stirbu, Moraru, Farcane, Blidisel Popa (2009), Porter study gives a revelation that the basic goal of â€Å"an audit in the pre-1920’s phase was to uncover fraud† (Stirbu, Moraru, Farcane, Blidisel Popa, 2009, p.56). However, it is pointed out that by the 1930’s, the basic goal of an audit had shifted to accounts verification (Stirbu, et al, 2009). This change is highly likely to have been brought about by the increase in the volume as well as the size of the transactions of business organizations which consequently caused it to be not likely that the auditors could carry out the evaluation of all transactions. In the course of this period, the profession of auditing started to present claims that the fraud detection responsibilities lay in the hands of the management. Moreover, management is supposed to as well have carried out the implementation of suitable internal control systems in order to ensure prevention of fraud in their organizations (Stirbu, et al, 2009). In the course of the 1960s, there was general discontent among the public and the media that the auditors were not willing to accept the responsibilities of fraud detection. The audit helpfulness was const antly called in to question as, in general terms, did not succeed in exposing fraud (Stirbu, et al, 2009). However, in spite of the prevailing criticism, the auditors went on minimizing the significance of the role they played in fraud detection by making an emphasis that the responsibility was in the hands of the management (Stirbu, et al, 2009). In the course of the 1980s, with advancement in technology, the complexity and volume of incidents of fraud have posed severe problems for businesses†( Stirbu, et al, 2009, p.57). Although determination has been carried out of the case law that in particular situations auditors have the responsibility of fraud detection, attempts have been made by the courts to ensure maintaining of the responsibilities of the auditors within logical limits. (Stirbu, et al, 2009). On the contrary, an argument is presented by Boynton, Johnson Kell (2005) that, beginning from the time of the fall of Enron, there has been refurbishing of the auditing s tandards to re-emphasize the duties of auditors in fraud detection. The assertion these researchers make is based on ISA 315 and ISA 240. ISA 315 calls for the auditors to carry out the evaluation of the efficiency of â€Å"an entity’s risk management framework in preventing misstatements, whether through fraud or otherwise, in the course of audit† (Stirbu, et al, 2009, p.57). According to Boynton et al (2005), formerly, this requirement did not exist. These researchers go ahead to present an explanation that such an evaluation was needed previously just at a time they made a choice to rely on that framework and to ensure reduction of the audit investigation extent (Boynton et al). Moreover, the members of staff involved in an audit are required to engage in communicating their findings among themselves in order to avoid situations in which the staff members, operating in an independent manner on their individual sections of the audit, have not been able to appreciate the importance of evidently small irregularities which, if brought together, assume a more threatening sense. In addition, Boynton et al (2005) present a claim that auditors are supposed to be more practical in their search for fraud in the course of carrying out an audit basing on ISA 240. The auditors’ responsibilities now encompass having consideration of opportunities and motivations offered to prospective fraudsters, and also rationalizations that a fraud activity is warranted. There are as well expectations about the auditors to engage in making inquiries more intimately into motivating factors that contribute to issues such as; occurrence of mistakes in accounting estimates, â€Å"unusual transactions that appear to lack business rationale, and reluctance to correct immaterial errors discovered by the audit† (Stirbu, et al, 2009, p.57). According to Omowumi (2010), even if the public have constant expectations of auditors to expose fraud, they do not have specif ic duty of detecting fraud since heavy dependence is put on the management to offer documentation and information; the frauds which are small are hard for the auditors to detect, especially if they are being committed by more than a single key staff member within the company. It is pointed out that there is maintaining of the ‘International ‘ standard that the mandate of the auditor may call for him to take cognizance and engage in reporting issues which come to his attention in carrying out his tasks, which relate to â€Å"compliance with legislative or regulatory requirement, adequacy of accounting and control system, viability of economic activities, programs and projects† (Omowumi, 2010, p.73). Of late, a view has come up in which it is emphasized that the auditors are supposed to play a more significant and direct role in setting up good governance, in case this implies having expectation of them to cross the set up boundaries of legitimate audit functions, à ¢â‚¬Å"it would be stretching the string too far, without gaining anything positive and substantial† (Omowumi, 2010, p.73). The only available option then is to make the auditors to have a feeling of being more careful and dutiful and thus, becoming more effective, at the same time confining themselves to â€Å"their term of reference† (Omowumi, 2010, p.73). Conclusion The level of fraud in the business organizations has been ever increasing and a belief is held among the professionals that this level is likely going to go on increasing. The cost of fraud to the business organizations as well as to the public can only be approximated, since a large number of fraud cases go unreported. However, the current statistics give an indication of the enormous values that are linked to fraud. In addition, with advancement in technology which involves use of computers in organizations may make these organizations to be more prone to fraud. In order to deal with the problem of fraud , there must be exertion of a joint effort by the management of the business organizations, the auditors as well as the employees in these organizations. Each and every person has to come to a realization that fraud is not a crime that has no victims. The cost that arises following committing of fraud is shared by all people through higher costs as well as through reduced business profits. By putting sufficient internal controls in place by the management, as well as favourable working conditions for the workers, stricter requirement for the auditors and also putting in place codes of ethics for the workers in the organization, every person can begin to fight frauds in the business organization. References Akinwolemiwa, C. G (2009). The auditors’ responsibility to consider fraud in an audit of financial statement. The Nigerian accountant-Institute of chartered Accountant of Nigeria journal, 2(1), 57-64. Association of Certified Fraud Examiners (2008). 2008 Report to the Natio n: Occupational Fraud and Abuse. Austin, TX: ACFE. Boynton, W., Johnson, R. Kell, W. (2005). Assurance and the integrity of financial  reporting. New York, NY: John Wiley Son, Inc.  Fraud, (2012). Retrieved from http://dictionary.webster.us/fraud Omowumi, A. O. (2010). The changing responsibilities of auditors in detection and prevention of business frauds within a challenging environment in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 1(2), 71 – 75. Oyinlola, A. O. (2010). The role of auditors in fraud detection, prevention and reporting in Nigeria. Library Philosophy and Practice, 1 (1), 517. Peltz,S. Bart. D.P. (2009). The threat within: employee fraud detection and prevention. Web. Porter, B. (1997). Auditors’ responsibilities with respect to corporate fraud: a controversial issue. London, England: Paul Chapman Publishing. Preventing and detecting fraud in not-for-profit organizations. (2009). New York, NY: Keller Owens. Stirbu, D., Moraru, M., Farcane, N. Blidisel, R. Popa, A. (2009). Fraud and error auditors’ responsibility levels. Annales Universitatis Apulensis Series Oeconomica, 11(1), 2009. This research paper on Responsibilities for Fraud Detection and Prevention was written and submitted by user Natalya E. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Night4 essays

Night4 essays Elie describes the events that are occurring around him and his profession. The Jews from the town of Sighet are relocated (against there will) to the Jewish ghettos. Elie had to leave all of his belongings and possessions behind. They were transported from their desired residence to the ghettos by cattle trains. Elie must have felt helpless, sad, and angry that everything that he and his family had worked for was being taken away. He as well felt this way because he could not do anything about it and/or to prevent it. He had the mature feelings even though unlike many other children he was not separated from his family helping him deal with what was going on around him better. Elie and his family were moved to an internment camp by the name of Berkenau. The prisoners were kept in the dark about their final destination (an concentration camp). The family as well was not aware of ware they were going. On the cattle, cars the conditions were unbearable. There were such a number of people on these train cars that the individuals inside had to take turns who were standing and who were sitting. The individuals including Elies family were trapped in these conditions for several days without the assistance of food or water. There was a woman on the train named Madame Schachter who kept ranting and raving about a fire the entire trip. Elie must have felt helpless and cramped. He along with the others must have been angry and probably took it out on each other. They as well had time to try to compute what ha happened to them. Many were looking forward to a change since they believed nothing could be worse than the ghettos they had been dwelling until this point. Elie and his family arrive the most destructive of all concentration camps Auschwitz. This camp was responsible for roughly 1.5 million deaths. Here the systematic killing (eradication) of Jews, Gypsies, and Homosexuals was honed to a finite science....

11 Content Marketing Misconceptions That Make You Sound Dumb

11 Content Marketing Misconceptions That Make You Sound Dumb Content marketing is as popular as ever. According to Google Trends, it is actually more  popular than ever. Despite that popularity, how do you know that you are doing it right? You might be repeating some of these common content marketing misconceptions. Even worse, they might be making your sound dumb. You don’t want to sound dumb, do you? Of course not! Here are 11 of the most commonly repeated content marketing misconceptions that will make you sound dumb and (more importantly) how to avoid them. #1 ) â€Å"How do we best describe our product using content marketing?† Why you sound dumb: You’re doing it wrong. Content marketing isn’t about your product, it’s about the people that use your product. Give them what they really want. Content marketing has brought on a major shift from the status quo.  It is no longer about you and your product; it is about the people who use your product. You see, we used to create marketing materials that covered the features and benefits of our products, highlighting every mindless detail. That doesn’t work anymore.   Your audience wants more. Content marketing is about providing our audience with value in exchange for their time. This means giving them advice and helpful materials that enrich their lives and build trust with our brand. If you are trying to describe your products using content marketing, then you are definitely doing it wrong. Even if your product can technically â€Å"enrich your customers lives.† Focus your content marketing efforts on the subjects that your customers care about. What do they want to hear? What are the most common questions that they ask you? How you can answer them with content marketing? Read more: What Is Content Marketing (Really)? #2) â€Å"I wonder if we can hire an agency to do all this work for us.† Why you sound dumb:  The best content marketing will almost always come from you. Find the experts in your own team first. There are plenty of good agencies out there that can help you with your content marketing, but that doesnt necessarily mean they should be your first resource. Before you outsource, make sure you try things out on your own. Often the best content marketing is provided by the industry experts right within your own team. We all have industry experts on our team. They know what your customers want and how to talk to them so that they understand. Who are your experts, and and how can you get them involved in your content marketing efforts? Dont give up on this too soon. Read more:  How To Run The Perfect Content Planning Meeting #3) â€Å"We just need to create a viral video, that’s all.† Why you sound dumb:  Content marketing is a marathon and not sprint. You can improve your likelihood of virality, but it can’t be manufactured. Don’t look for a quick-fix solution. Viral videos are great, but dont think that you can turn and create one on a dime. While companies like Upworthy have proven that the chances of making something viral can be increased, it is not an exact science. In other words, you cant manufacture a viral video, and you probably shouldnt try. In marketing, it is tempting to become distracted by the one size fits all solution that feels like an easy way out. In reality, it probably wont work. Content marketing is about the long haul and the slow build. Concentrate on providing value and building trust, rather than being an overnight sensation. Read more:  25 Growth Hacks Your Content Marketing Desperately Needs #4) â€Å"First, let’s spend several months defining our content marketing strategy.† Why you sound dumb:  This is a decision that is made by fear. You don’t need a strategy, you need to make a commitment to trying new things and learning while you do it. The word strategy gets thrown around a lot in marketing, and usually it paints the wrong picture about what we need to do as marketers. The strategy term generally assumes that we can make a grand plan and execute it perfect. Both of these assumptions are incorrect. First of all, we dont always know that our marketing strategy will actually work. Secondly, we dont know what we are going to learn once we started executing our plan. The right way to do marketing is to simply start with something, learn from the results, and make constant revisions to our plan. We should never write out a step-by-step checklist and assume that we have it all figured out. We dont. Read more: Here’s Why You Don’t Need A â€Å"Content Marketing Strategy† #5) â€Å"I know, let’s draw some inspiration from the Coca-Cola campaign.† Why you sound dumb:  Yes, Coca-Cola has a pretty epic content marketing plan going on right now, but youre not Coca-Cola. Far too often marketers emulate the big advertising that they see around them rather than serving their own audience in a unique way.  This is why so many advertising agencies attempt to make funny commercials that simply try and build brand awareness rather than building trust. Its an easy mistake to make, because it is the type of marketing that we see every day. Take the Coca-Cola site ahhhh.com. It includes hundreds of web based games that are fun, addictive, and filled to the brim with iconography relating to the Coke brand. It is a great example of content marketing, but that doesnt mean that you need one too. Dont try to keep up with the big brands. Get to know what your audience wants, and give them what they need. Dont go chasing the big timers. Read more: 5 Ways To Find Truly Unique Blog Ideas #6) â€Å"Before we get too far, we need to decide what our brand message will be.† Why you sound dumb:  Don’t you see? You are not longer in charge of your message. Find the conversation that already exists and work your way into it. That or, simply provide big value and go from there. More than anything, social networking has changed how much control we have over our companys brand. With nothing more than a Facebook profile or Yelp account, your customers are now inventing your brands message on the fly. What your customers say about you is no longer up to you. Youre simply along for the ride. As content marketers, it is important that we focus our efforts on entering the conversation that is already happening rather than trying to invent our own. What are the hot topics surrounding your brand? What topics do people talk about the most within your industry? Attaching yourself to these discussions will be much more attainable than defining the messages yourself. Invest in the community that your brand serves, and they will probably invest back in you. Read more:  Should You Start A Google+ Community? #7) â€Å"We don’t really need images. Its all about keywords and SEO right?† Why you sound dumb:  Images add SEO value all by themselves. They also make your content better and more engaging. They are a big part of the content marketing puzzle. Images are hard. It can take a lot of work to come up with unique and interesting images for your blog, but it is probably worth the effort. Google Image search is often a large contributor to overall search traffic, and images themselves make your content more enjoyable and easier to digest. The big trick is to make sure that your images are unique, and not breaking any copyright laws. Read more: Are You Sure You’re Using Copyright-Free Images On Your Blog? #8) â€Å"We share our content on Facebook. Isn’t that enough?† Why you sound dumb:  You need to spend as much time on promotion as you spend on the content. This should include a social sharing schedule. A lot of effort in content marketing is wasted when content is created and not shared properly. The most common (and frustrating) scenario is a blog post that goes live only to be shared once our twice on social media. There is so much more that you can do! You simply must share your content more than once on social media. The strategy that we recommend actually includes creating a social media promotion schedule that happens every time you complete another blog post or publish another article on your site. The schedule could look something like this: On publish – Social message sent when blog post goes live Same day – Initial social messages trickle out to your accounts over the next 2-3 hours. Next day – Messages are shared again on the appropriate social channels. Next week – Another series of messages are pre-scheduled and sent the following week. Next month – Even more social messages are pre-scheduled for the following month. Next _____ – Additional messages can optionally be scheduled for the three-month mark or beyond. By incorporating this type of schedule, you can nearly double the number clicks and shares that your post will see. It is a win-win scenario that many of us fail to execute. Read more: How To Promote Your Blog With Social Media #9) â€Å"Content quality doesn’t matter. We just need to trick the search engines.† Why you sound dumb:  You can’t trick the search engines. They actually care about quality more now than ever. With every update to their algorithm, Google is putting content quality at the forefront of their process. Blogger Neil Patel does a great job outlining Googles algorithm changes over that last several years. It is very clear that Google likes good quality content, and even more importantly, knows it when it sees it. The question is, do you? Many times, we look to take a quantity over quality approach to creating content. We publish more content with fewer words and hope to break through in the Google rankings. Not so fast. Content marketing is not a race for more content, it is a race for better content. In fact, many bloggers are choosing to cut back on the amount of content they create just so they can focus on creating better content from the get go.

Assignment 9 Essay Example | Topics and Well Written Essays - 500 words

Assignment 9 - Essay Example Therefore, human relations based on the school scenario are important, as it provides a strong foundation that enables the staff to be able to focus on their self-development thereby enhancing a better and effective working environment. It is through great relationships that most organizations are able to prosper. One major development is the increasing importance of the interpersonal skills in every work setting in all organizations. It is well noted that technical ability in this age of information is not enough in achieving organizational success. Interpersonal skills as well as communication skills are major rating factors when it comes to hiring employees. For example, the school board hired most of their staff based on their interpersonal skills. The board rated their staff’s interpersonal skills because they wanted to know how well the staff will relate to their co-workers and students in terms of their speaking and listening skills (Wiles & Bondi, 2004). Based on the organizational settings of the studies within our textbook, organizational culture simply refers to a collection of shared beliefs, rituals, values, myths and stories that tend to give a feeling of unity among the organizational members(Wiles & Bondi, 2004). It is quite clear that the culture depicted by most organizations is simply a reflection of the beliefs, behaviours and the values that are brought up by a group of individuals. Therefore, the success of any organization is also built on its abilities to portray a good image and outcome of the organization’s objectives. Communication is referred to as the means through which we are able to create a common understanding between others and ourselves. In order to bring out the aspect of self-development, people should be able to learn on how to communicate effectively. It is through the development of communications skills that employees are able to boost the working relationships that exist among them. For

The dialog between jonathan cullers essay and to the light house

The dialog between jonathan cullers and to the light house - Essay Example Stream of consciousness is the technique used by Woolf to explore the thought processes of the characters. However, Woolf does not employ it in the fragmented prose form that is identified with James Joyce. Instead she brings order within the disorderly working of individual consciousness by making her prose lyrical. Through apt and vivid imagery, Woolf is able to knit together the disjointed thoughts of several of the novel’s characters into a unifying whole. What emerge through this exercise are themes of human loneliness, insecurity, loss, anguish and longing. But the overall experience of the novel is far from tragic. To the contrary, the reader is taken on an intimate journey into the most personal and most inaccessible reaches of the character’s inner churnings. A successful cathartic effect is experienced by the reader through the linguistic virtuosity of Woolf. â€Å"Literariness is often said to lie above all in the organization of language that makes literature distinguishable from language used for other purposes. Literature is language that ‘foregrounds’ language itself: makes it strange, thrusts it at you – ‘Look I’m language!’ – so you can’t forget that you are dealing with language shaped in odd ways.† (p.28) Woolf’s prose style is exemplary in achieving this form of foregrounding. She accomplishes this through various stylistic and thematic features. Through lyrical exposition of inner monologues, Woolf deliberates on subjects as profound as ‘the meaning of life. The foregrounding of language in general and English in particular is evident from how it is made the only possible medium of communication. Moreover, one can see how the literary form of the novel itself is foreground even if not intended by the author. For example, the following is an illustration of a stream of consciousness which only works on

Resistance To Change A Critical Analysis Management Essay

Resistance To Change A Critical Analysis Management Essay Now a days organizations are required to make changes for their survive. It is very important to response quickly to the modern technological advancement and competition to internal and external levels (Edmonds, 2011). So change is a everyday experience in private and governmental organization for its development. The purpose of this study is to analyse the issue of managing organizational change by various approaches. The paper will argue concisely on the factors of resistance to change and how the resistance is handled for successful implementation of a change plan through reviewing relevant literature on the topic. It will further examine the scope of effective management of organisational change process. In this paper, the analysis into effective management of resistance to organisational change is achieved through three main sections. Firstly, change is defined in the light of organisational development. Secondly, factors influencing change and resistance to change are discussed analytically in two consecutive sections. Finally, it discusses management of resistance to change elaborately before concluding the motion. What is change Change is defined as any alteration of the status quo (Bartol and Martin, 1994;199). Organizational change may be defined as new ways of organizing and workingà ¢Ã¢â€š ¬Ã‚ ¦.. (Dawson, 2003: 11 ). Breu and Benwell (1999), Ragsdell (2000) as well as Bamford and Forrester (2003), define organisational change as the process of moving an organisation from some present status to new status whether it is planned or unplanned. Organizational change is a form of difference from its long term old position to introduce a new idea and action for better performance and adjustment of new environment (Schalk et al.,1998). From different perspectives , we can observe different types of changes but in generally organisational changes can be classifieds into two types- incremental and radical (Ragsdell, 2000; McAdam, 2003; Milling Zimmermann, 2010). Literature argues that the incremental change is a small scale change on its present structure and functions which is continuous, on the other hand radical change involves a large-scale basic change (McAdam, 2003; Cunha, et al, 2003; Romanelli Tushman, 1994). Furthermore, Beugelsdijk et al (2002) argue that, organisational change process initially begins with radical change and follow the incremental change that creates a prospect or a threat. In contrast, Del Val and Fuentes (2003) state that change is a general procedure of response to organisational settings because real changes are not only incremental or transformational but also a mixture of both. However Bamford and Forrester (2003) have further classified organisational change as planned and emergents.The planned approach organisational change highlights the different status which an organisation will have to shift from an unacceptable position to recognized desired position (Eldrod II and Tippett, 2002). The emergent approach change suggests that it is an unpredictable and undesirable continuous process of adjustment to changing circumstances (Burnes, 1996, 2004; Dawson, 1994). But uncertainty of circumstances create emergent approach more significant than the planned approach (Bamford and Forrester, 2003). So, it is import to any organisation to identify the requirements for its prospects, and how to deal with the required changes and it is the unseparable strategy of an organization (Burnes, 2004; Rieley and Clarkson, 2001).Managerial proficiency is very much needed for successful change (Senior, 2002). Although for the existence and effective competition successful management of change is highly required (Luecke, 2003; Okumus and Hemmington, 1998). Factors Influencing Change: Hughes (2006) argues that, different factors can influence organisational changes, from the effect of internal control, to external rolls in consumer behaviour, or changing the business settings. The most common reasons are: Legislation, incorporation or attainment, competitive market, world economy, Structural change, technological advancement and Strategic re-organisation. Moreover, Haikonen et al (2004) argue that different important internal and external factors which influence change as policy, structure, control system, organisational culture, and power distribution. Moreover, Saka (2003) state that the external factors as national or international rules and regulations influence the organization to accept new strategies to survive in changed situation. Furthermore, many other factors related to market competition, economic growth, and living standard also oblige organisation to commence change programmes for update and manage the external forces (Beugelsdijk, et al, 2002; Breu Benwell, 1999; Carr Hancock, 2006). Consequently, the technological advancement create internal and external demands to generate the capabilities of organizations and assess their strategies regularly (Harris Wegg-Prosser, 2007; Ragsdell, 2000; Shaft, et al, 2008). Finally, Eisenbach et al (1999) also recognized different factors that compel change such as innovation, new technology, workforce, productivity and working quality. Similarly, McAdam (2003) and Mukherji and Mukherji (1998) emphasize that availability of skilled employees, changing customer behavior, free flow of information and cultural change make very impact on organization for modification on their activities and compel it to readjust or large scale change for transforming from deadlock to effectiveness. Finally, internal change factors like leadership, organizational culture, employee relationship, workload, reward system, internal politics, and communication system compel the organization to take up change strategy (Bhatnagar, et al, 2010; Potter, 2001; Van Marrewijk, et al, 2010; Young, 1999).On the whole, Breu and Benwell (1999) as well as Rees and Hassard (2010) emphasized the development of capabilities of managers to evaluate the situation exactly from different factors to effective management of resistance to change program. Resistance to Change Resistance is a phenomenon which affect the change process by slowing down its starting, obstructing its accomplishment and rising its costs(Ansoff, 1990; Del Val Fuentes, 2003; Young, 1999). In contrast, resistance is a manner that tries to maintain the status quo, so it is comparable to inertia which tries to avoid change (Maurer, 1996; Rumelt, 1995). Similarly, Jansen (1996), Potter (2001) as well as Romanelli and Tushman (1994) argue that organisational change permeates resistance from the persons as their calm sector are influenced by creating stress, insecurity and uncertainty. Moreover, Ford et al (2002) as well as Reissner (2010) support that resistance comes about since a change program threatens existing status, or causes fear of supposed consequences like trouble in personal security and apprehension about new capability and skills to perform in the changed surroundings.On the other hand, resistance by workforce may be seen as a general part of any change process and in t his manner a valuable source of knowledge and useful in learning how to manage successful change process (Antonacopoulou Gabriel, 2001; Bhatnagar, et al, 2010; Bovey Hede, 2001). Furthermore, Antonacopoulou and Gabriel (2001) and Lamb and Cox (1999) argue that unusual community will resist any change program for various reasons including misunderstanding, inconvenience, negative rumor, economic proposition, low tolerance for change and fear of the unknown. However, the observation of annoyance in long standing custom associated with change initiatives finally contribute in the appearance of resistance, mainly from middle managers who resist for the reason that of the fear of threat to their current position and supremacy (Marjanovic, 2000; Ragsdell, 2000; Saka, 2000). Moreover, in manipulative business environment, where major focus is on productivity and centralisation, occurrences higher rate of resistance than manipulative business units having a more open culture, giving freedom to explore new capacities and technologies (Mirow, et al, 2008; Valle, 2002).Accordingly, Lamb and Cox (1999) and Trader-Leigh (2002) indicate that dispute of resistance in public sector is much higher than that of private sector.However, Bovey and Hede (2001) as well as Del Val and Fuentes (2003) discover that when change principles and organizational principles are usually different then the workers show resistance to change while individual anxiety, ineffective management, failure precedent, little inspiration, insufficient tactical vision and pessimism are several sources of resistant. So, if the ground of change is not well planned and competently managed then the employees may prevent the change initiatives and they will apply protection policy to resist because of apprehension that they will be oppressed by others (Bovey Hede, 2001; Perren Megginson, 1996). Nevertheless, Jones et al (2008) argue that employees do not generally resist the change, but rather theoretical undesirable results of change or the process of execution the change.For that reason, all managers are necessary to give appropriate concentration on human and socio-cultural issues to obtain a distinct policy for successful implementation of change.(Diefenbach, 2007; Lamb Cox, 1999). How to manage Resistance Resistance to change is an important matter in change management and participatory approach is the best way to manage resistance for successful change(Pardo-del-Val et al., 2o12). Potter (2001) and Ragsdell (2000) support that resistance to organisational change have to be observed as a prospect and preparing people for change as well as permitting them to vigorously participate in the change process. Furthermore, Conner (1998) affirms that the negative effects of resistance occurred from major changes can be minimize by open discution. Moreover Judson (1991) asserts that effective change can be committed and resistance can be reduce by commitment and participation of employees. In addition, contemporary managers required to examine and categorize all the stakeholders as change worker, impartial, conservatives or resistor as per their function in resistance to change so as to apply obligatory approach upon the definite form of people so that they feel like accommodating the change pr ogram willingly (Chrusciel Field, 2006; Lamb Cox, 1999). Moreover, it is essential to engage people in all stages of the procedure for successful completion of change where effective communication of change objectives can play one of the most important roles (Becker, 2010; Beugelsdijk, et al, 2002; Frahm Brown, 2007; Lamb Cox, 1999). Accordingly, Potter (2001) as well as Van Hoek et al (2010) suggests that for managing resistance to change successfully, organisations must build up the capability to predict changes and working approaches to the changes and thereby engage the employees to face the challenges sincerely with complete preparation. Similarly, Caldwell (2003) and Macadam (1996) propose that smooth running of organization managers should be open for involvement of employees at every steps of decision making process and productivity. Moreover, usually resistance happens as a result of misinterpretation among peoples and hence, in each change program it is essential that everyone concerned realizes the reason following the change from upper level to the lower level where training and cooperation may speed up the procedure (Beugelsdijk, et al, 2002; Bovey Hede, 2001; Johnson, 2004; Taylor, 1999). In addition, at the moment of crisis and ambiguity people require results, accomplishments and successful communication which will assist reduce anxiety and eventually produce enthusiasm for change amongst the employees (Hill Collins, 2000a; Potter, 2001). Consequently, the new public management emphasizes new type of policies which presume a flexible, open and more creative structure and therefore proactively illustrative targets, setting superior examples and creating exciting position might be regarded as a number of core leadership capabilities essential for routing change (Beugelsdijk, et al, 2002; Chrusciel Field, 2006; Harris Wegg-Prosser, 2007). Moreover, Aladwani (2001) rationalizes that opening human abilities of the workers by permitting them to use their intelligence being innovative at work takes place to be important where the function of managers have to be renamed from manager to trainer as to donate continuously on self-confidence building all over the business. Furthermore, alongside the background of rapidly growing technological improvement and deregulation since the early 1990s, ritual approach can no longer arrange the modern perception of shocking ambiguity and insistent change relatively dispersed organisations are probable to authorize the employees (Caldwell (2003; Harris Wegg-Prosser, 2007). In addition, Andrews et al (2008) and Caldwell (2003) have the same opinion with Frahm and Brown (2007) that not like the conventional top-down bureaucratic systems; the present managers must receive bottom-up participatory strategy by discussing with stakeholders. Caldwell (2003) more recommends that change managers should uphold possession of the change approach along with the stakeholders by connecting them in the process, who distinguish the authenticity of the business and it is usually they who grasp answer key to the problems. Lastly, as contextualization is the main element of any societal and organisational change, in the twenty-first century circumstance, the status quo is not a suitable preference and organisations must get slant and vigorous for the modern world of digital convergence (Carr Hancock, 2006; Harris Wegg-Prosser, 2007; Milling Zimmermann, 2010). Moreover, Bamford and Forrester (2003), Diefenbach (2007) and Eisenbach et al (1999) consent that in the growing approach to managing change, elder managers transform themselves from administrator to facilitator and the major accountability of execution vest on the middle managers. Also, Diefenbach (2007) more highlights that middle managers should cooperate with peers, divisions, consumers, dealers and also with the senior managements as if they are the key player of organisational change programs. Furthermore, Bamford and Forrester (2003) as well as Diefenbach (2007) consider Lewinà ¢Ã¢â€š ¬Ã… ¸s (1958) three step model of freezing, unfreezing and refreezing, have supported that prior to effective implementation of any new manners, the old one has to be untrained.

Jwellery Industry in India

THE JEWEL INDUSTRY OF INDIA WITH SPECIAL REFERENCE TO GITANJALI INTRODUCTION INDIAN JEWELLERY INDUSTRY India is a leading player in the global gems and jewellery market. The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond studded as well as gemstone studded jewellery. The Indian gems and jewellery industry is competitive in the world market due to its low cost of production and the availability of skilled labour. In addition, the industry has set up a worldwide distribution network, of more than 3,000offices for the promotion and marketing of Indian diamonds. The sector is expected to register a compound annual growth of (CAGR) of 13% during 2011-13, according to a report â€Å"Indian Gems and Jwellery Market Forecast 2013†. (By research firm RNCOS). MICHAEL PORTER’S 5 FORCE MODEL FOR JEWELLERY INDUSTRY INTER- FIRM RIVALRY- HIGH There are two types of rivalry. 1) Inside India & (2) Outside India. †¢Large presence of unorganized sector. 0. 2 Million Gold jewellers and over 8,000 Diamond jewellers †¢International rivals Such as, China †¢Threat from producing nation like S. A. & Russia. BARGAINING POWER OF SUPPLIERS – MEDIUM In jewellery industry the suppliers are S. A. , UAE, Australia, US, Congo, Botswana, Russia , DTC. †¢Few Alternatives of cutting & polishing. †¢Skilled labour †¢Bargaining power of India is enhanced because India is largest consumer of gold jewellery. BARGAING POWER OF BUYERS- LOW Divided in two types 1. Domestic buyers & . Foreign buyers †¢As investment (Demand increase) †¢Bargaining power of Indian exporter is high because Majority of the world's rough diamond production is cut and polished in India THREAT OF SUBSITUTES- LOW Substitutes are Real assets, Stock market, ; Bank deposits ; Mutual fund investment and other types of jewellery like imitation Jewellery, bagasra jewellery, stone jewellery etc. †¢Second preferred investment behind bank deposits †¢Status and standard of living increase so demand is increasing at High rate BARRIERS TO ENTRY- LOW TO MEDIUM * Low capital requirement Government subsidy * EXIM policy ; government’s rules ; regulations are high * Skilled manpower is essential * Advanced technology required. GITANJ ALI | | | | | Vision To emerge as a jeweller of choice, in terms of quality, style and surpass all levels of customer satisfaction. Mission To assimilate the expertise of trained personnel and state-of the art machinery, so as to nothing, but the best. Values Are Integrity, Solidarity, Credibility and Perfection. The Gitanjali Group which was established in 1966, and is one of the earliest diamond houses in India. By 1968, it was accorded a ‘Sight† by the Diamond Trading Company Ltd. London and Gitanjali became one of the first Sight holders in India. It has received over 50 National and Council awards from the Ministry of Commerce for outstanding exports. It is one of the leading diamond exporting companies in India. Presently, Gitanjali Group has highly modernized diamond cutting and polishing facilities in India. The group strengthens its core business of loose diamonds with international association. Internationally, business patterns of the diamond industry. The Group has positioned itself to manufacture and promote diamonds as well as studded jewellery right up to the retail level. Gitanjali Group one of the leading integrated diamond ; Jewellery manufactures ; Retailers in India with turnover of Rs 3467 Cores. The Company has strong brands such as: * ASMI Asmi was launched in 2002 by the Diamond Trading Corporation. All the years the brand has been endorsed by various actresses such as Kajol, Parizad Zorabian ; Mandira Bedi. All these women epitomize the different strengths that an Asmi woman is identified with fire – spirited, goal oriented ; with an inner fire. NAKSHATRA Nakshatra is one of India’s most reputed diamond jewellery brands, achieving an iconic status within three years of its launch in 2000. Today, it is a leading diamond jewellery brand, patronized by women of fashion in almost all segments of society. * SANGINI Sangini is a high profile brand launched by the Diamond Trading Company, and Spectrum Jewellery , a joint venture between the Gitanjali Group and Sanghavi Exports, promotes the brand in India. * DIYA DIYA is the distilled essence of the Gitanjali Group’s four-decade long engagement with jewellery. It is the first B2B diamond jewellery brand for manufacturers and the trade. It offers exquisite designs, selected after a rigorous India-wide survey of 6,300 women – some of which are already acknowledged classics. * BEZEL Bezel is a watch store from the stable of the Gitanjali group products includes watches and writing instruments. Brand mix will include GLL brands ; brands from outside. * WORLD OF SILVER It has been conceptualized for offering silver gifts in various product categories like Home decor, Office Utility, Bar Sets, Table ware, Devotional Collections and Artefacts. It range of International Brands , Greggio from Italy and Frazer ; Haws from UK, offering best of the brand value and perceived value   while making gifting a lifestyle statement. It caters to the high end, up market ; value conscious niche cliental. * GILI Gili’s brand identity is to ‘Embrace the Gili way of easy elegance’. The Brand characteristics are Stylish, Contemporary, Extrovert, Enthusiastic and Self-made. And its Design concept is easy to wear, highly contemporary and trendy designs * D’DAMAS D'damas India Jewellery is a joint venture between Gitanjali Group and Dubai-based Damas based in  Mumbai. It has a presence in 159 towns and cities across  India. It main area of business is manufacturing and marketing of gold, diamond, silver, platinum branded jewellery's in  India. It has six sub brands – Lamhe, Glitterati, Vivaaha, DER, Solitaire and Saumya. It is also only international brand in  India. D'Damas India also used as manufacturing base and will export jewelleries to markets like Saudi Arabia, Japan, US and Europe markets. * MAYA GOLD MAYA is the brand from the Gitanjali Gold Collection specifically aimed at the Indian wedding market and similar festivities and traditional occasions for gift-giving, especially from parents to daughters. Lucera, Calgaro, Rivaaz, Kashvi, Stefan Hafner, Ezee Diamonds, Aakanksha, Rosato, Shuddhi, Parineeta, Sagaee and Menz are some other brands which sell its products in India through its vast network of 1,250 outlets including outlets in host stores. In fact, five of the top six brands in the Indian market are owned or managed by Gitanjali. These brands manifest the significance of the group in the Indian Jewellery retailing market. Additionally, the Company operates 143 retail Jewellery stores located across the United States through the acquisitions of Samuel Jewellers and Roger Jewellers. Activities undertaken by Gitanjali:- * Sourcing and Trading of Rough Diamonds * Diamond Manufacturing * Distribution and Trading of Polished & Cut Diamonds * Jewellery Manufacturing and Exports * Jewellery Sourcing (Local & International Markets) * Manufacturing Branded Jewellery * Retailing Branded Jewellery OBJECTIVES * The main objective of this term paper is to understand the value chain and its strategic distribution presence of GITANJALI in India. * To conduct a market survey in order to know the 1) Consumer perception about jewellery. 2) Brand awareness of various brands in jewellery market. 3) Parameters which the consumer considers while buying jewellery. * To critically examine the company and the environment by conducting the SWOT and PORTER’S 5 FORCE ANALYSIS. * To analyze and evaluate the financial performance of GITANJALI over the years. To highlight the CSR initiatives and the CORPORATE GOVERNANCE taken up by GITANJALI to uplift the society. * To study about the aggressive retail strategy and its growing focus on International and Domestic Reatail. SWOT ANALYSIS OF GITANJALI STRENGHTS †¢Large integrated diamond & jewellery player and having an international presence. †¢Pioneers of branded jewellery in India. †¢Strong marketing & distribution network. S trong retail presence in India and in U. S. 112 distributors and 1246 outlets in India and 143 outlets in U. S. Strong brand equity and broad product range Such as, Gili, Asmi, Nakshatra, Sangini, D’damas, Vivaaha, Maya, Giantti, Desire, Samuels etc. †¢Visionary leadership (Acquiring Nakshatra, Samuels, Rogers etc. ) †¢Expanding manufacturing capabilities in Mumbai and at special economic zone in Surat to address increasing demand. †¢Net Worth is 3,460. 37 million Rs. So we can say that it is financially very strong company. †¢Sight holder status with DTC through a promoter group company. †¢Highly skilled, qualified and motivated employee. WEAKNESSES †¢There may be conflicts of interest between them and certain of their Promoter group companies. As the major raw material requirements need to be imported, companies normally stock huge quantities of inventory resulting high inventory carrying costs. †¢Technology is less improved compared to Ch ina and Thailand’s company. OPPORTUNITIES †¢New markets in Europe & Latin America. †¢Growing demand in South Asian & Far East countries. †¢Industry moving from a phase of consolidation. †¢Expansion possibilities in lifestyle and luxury products in India like watches, leather goods, Platinum jewellery because increasing disposable income of people. THREATS †¢International Competition:-China, Sri Lanka and Thailand’s entry in small diamond jewellery. †¢Increase in the price of Gold & Diamonds. †¢Other local competitors. According to the data 97% jewellery sales are by family jewellers. †¢Threat from producing nation like S. A. & Russia. VALUE CHAIN OF GITANJALI * Sourcing and Trading of Rough Diamonds * Diamond Manufacturing * Distribution and Trading of Polished & Cut Diamonds * Jewellery Manufacturing and Exports * Jewellery Sourcing (Local & International Markets) Manufacturing Branded Jewellery * Retailing Branded Jewellery DISTRIBUTION AND RETAIL STRATEGY OF GITANJALI GITANJALI RETAIL BUSINESS * Gitanjali has strong retail presence in the world’s largest markets for jewellery. Retail business is a major Contributor in Gitanjali’s revenue. Gitanjali has over 2000 plus retail outlet across India and in the process of expansion in tier II and III cities to cater to new segment of the cu stomer. * USA is a largest jewellery consuming country and 45% of worldwide diamond jewellery sales are made in the United States. In FY 2007-08, Gitanjali made a strategic acquisition in USA, including Samuels and Rogers, and now has about 137 stores in Centre and across USA, being expanded to 200 stores in the near future. * Samuels and Rogers of Gitanjali are the 8th largest branded jewellery retail chain in US. * Gitanjali’s integrated supply chain business model has given an advantage to survive and post profit despite of US recession. * Gitanjali retail business has spread through all channels and in all geographies, across all the market segments * Net Profit has gone up because of shift in market from wholesale to retail. | | * | RETAIL EXPANSION STRATEGY IN INDIA * The Changing Socio – economic factors in India created a clear opportunity in Lifestyle and Luxury markets in India. These changes in retail environment have created opportunity for establishment of modern retail formats. Keeping this in view Gitanjali has embarked on an aggressive domestic retail expansion plan. * Gitanjaliâ₠¬â„¢s strategy is to increase the market share of various brands and its positioning in the market. Strategy is to generate demand for branded diamond jewellery in the future. Flagship product brands of the company are able to convert themselves into retail brands. * The group has introduced many promising brands to its bouquet. The new collection includes World of Solitaire, World of Silver, ME Solitaire, Maya, Gitanjali Menz, Maya Bridal, Bezel and many more. | * Gitanjali notable innovation has been its dramatic breakthrough from the confines of traditional distribution of jewellery and launching of mass distribution through variety of channels. By passing the old world of neighborhoods proprietary jewellery stores, it brought its new world branded jewellery into the world of super stores and department stores, dedicated jewellery marts and chain stores supported by international certifications of scientifically tested purity and authenticity. * Gitanjali is even marketing its br anded jewellery directly by mail order catalogue Gitanjali placed its jewellery brands right into the context of the new consumer’s shopping environment of new and global branded personal goods and accessories. Gitanjali supported its brand with high-visibility positional branding in both mass and local up-market media. With this multi – tiered mobilization of formats, Gitanjali is well placed to advance and realize its vision of global leadership. GITANJALI FINANCIAL PERFORMANCE The Company is making conscientious efforts in addressing the large market opportunities that exist in the Diamond Segment both in India and abroad. India, China, Israel and Belgium are the leading players in the diamond cutting and polishing industry. India accounts for 60% of the global polished diamonds in value terms, 80% in caratage and 90% in pieces. TURNOVERS & PROFITS During the end of the financial year March 31, 2009 the sales and other income increased from 26,549. 08 Million to Rs. 26,940. 64 Million. The net profit before tax stood at Rs. 1,307. 20 million as against Rs. 1,486. 75 million in the previous year. The net profit after tax stood at Rs. 1,267. 69 million as against Rs. 1,381. 55 million in the previous year. FINANCIAL REVIEW Gitanjali Gems consolidated results of operations for the year ended March 31, 2009 include business and operations of the various subsidiaries/joint ventures. The company has achieved overall sales growth for the year ended March 31, 2009 of about 5% compared to last year. The gross revenue from diamond segment has decreased by 10% whereas the gross revenue from jewellery segment has substantially increased by 24% and thus the ratio of diamond and jewellery in the sales mix accordingly has improved more favourably towards jewellery from 55:45 last year to 47:53 for the year ended March 31, 2009. HIGHLIGHTS FOR THE YEAR 2010| * | * Jewellery Sales turnover increased by 60% to 1,098 cr. in FY10| * | * EBIDTA gone up by 44% to 102 cr. in FY10| * | * Operating Profit registered a growth of 51%, stood at 91 cr. | * | * PAT of FY10 stood at 41 cr. registering an increase of 39%| * | * Gems and Jewellery Sales volume grown to 1812 cr. reported a growth of 63%| NINE MONTHS FY10 vs. NINE MON THS  FY09 * Jewellery Sales turnover increased by  43%  to  Rs. 2703 cr. as compared to  Rs. 892 cr. in nine months period FY09 * EBIDTA gone up by  37%  to  Rs. 307 cr. from  Rs. 223 cr. in nine months period FY09 * PAT of nine months period FY10 stood at  Rs. 139 cr. as compared to Rs 120 cr. in nine months period FY09 registering an increase of  16% * Operating Profit of nine months period FY10 stood at  Rs. 283 cr. as compared to  Rs 201 cr. in nine months period FY09, registering an increase of  41% GITANJALI CORPORATE SOCIAL RESPONSIBILTY (CSR) INITIATIVES AND CORPORATE GOVERNANCE HUMAN RESOURCES The Company believes investing in people through creating an environment where people are valued as individuals and are given equal opportunities for achieving professional and personal goals. The Company’s focus on development of Special Economic Zones includes huge employment opportunities and the Company already initiated through setting up training centre in SEZ Hyderabad which has a capacity to train more than 1,500 workers in diamond and jewellery manufacturing. CORPORATE GOVERNANCE The Company’s philosophy of Corporate Governance is based on preserving core values and ethical business conduct, commitment to maximize shareholder alue on a continuous basis while looking after the welfare of all the stakeholders which is primary responsibility of the Board of Directors, Management and employees. The Compliance of clause 49 of the listing agreement has undoubtedly raised the standard of Corporate Governance in India. However, regulatory directives and enforcement wil l not be sufficient to create a best in class transparent organisation. The corporate governance philosophy is based on the following principles: * Satisfy the spirit of the law and not just the letter of the law. Be transparent and maintain a high degree of disclosure levels. * Continuously innovate and adapt the Corporate Governance * Practices so as to meet new demands and tap new opportunities. * Comply with the laws in all the countries in which we operate. * Management is the trustee of the shareholders’ capital and not the owner. CORPORATE SOCIAL RESPONSIBILITY The CSR initiative under the name Sambhav brings together the different social programs that Gitanjali has been associated with over the years. These are programs in the fields of education, health, providing employment to PWDs. It focuses on integrating all of them and other different initiatives like Saksham, Saakshar, Sujyot and Sneh. The focus will be both on strengthening the existing programs as well as developing new ones too. It further aims to take this CSR initiative to new heights and is in the process of channelizing all their strengths and efforts to form a strong CSR team within the company to encourage and promote a wide range of social welfare activities internally or in partnering with other NGOs and government bodies. SOME ACTIVITIES UNDERTAKEN BY GITANJALI Rose day celebration for cancer patients | Gitanjali Gems Limited supported Cancer Patients Aid Association (CPAA)   in its celebration of  The rose day  Ã¢â‚¬â€œ a  day to make a difference in the lives of cancer patients. CPAA reaches out to cancer patients through medicines, counselling, research and rehabilitation. | | * Special rakhies by special children Gitanjali gems continues to support to ADAPT (spastic society) by orga nizing a sale booth of their products at Gitanjali gems Marol office  on 11th Aug 2011,  on the eve of Rakshabandhan. We repeated the achievements of last year by motivating and appreciating the efforts of these specially abled children by having sale of products close to  Rs 10000/-. The staff was extremely enthusiastic and extended their support through 100% participation. * Presentation on ‘Diabetes awareness and healthy life style’ Today Diabetes is one of the fastest growing lifestyle disease, with Indians   being the largest population affected by it. A presentation on diabetes awareness and healthy life style was organized on 25th July 2011 at  Transmission house ,Marol , for the benefit of the employees . It indicated the causes , symptoms ,prevention and cure for diabetes. A full house attendance showed the concern most of us have about this booming disease. | * Lecture on ‘The damaging effects of tobacco’ at Gemplus| | | As a part of SAMBHAV , CSR initiative ,  Ã¢â‚¬Å"The Damaging Effects of Tobacco† were highlighted at a presentation made under the Tobacco Intervention Initiative (TII) program of the Indian Dental Association (IDA) for the staff and workers of   Gem plus ,Gitanjali Gems, Mumbai   on 11th June 2011 by Miss. Tejal Rajgor. Tobacco leads to heart and blood vessel disease, heart attack, chest pain, sudden cardiac death, stroke, peripheral vascular disease (Gangrene of legs) plus it is also   responsible for cancer of various parts of the body like mouth, throat, lungs, stomach, kidney, bladder etc. Gitanjali Gem’s staff members felt that there was an urgent need for more prohibition of tobacco usage and this won’t happen until there is a public outcry, so meetings like these are designed to generate awareness in the hope of making the come community forward to request change.